Posted on: 27 May 2015 by Ross McSweeny
Wizz Air has released its financial results for the full year ended 31 March 2015 (FY15), including record profitability and margin expansion.
During FY15 Wizz Air opened 2 new bases and began flights on 63 new routes, with the carrier now offering over 380 routes to 38 countries from 22 bases. Furthermore, the airline recently showcased a refreshed brand.
Commenting on the results, Josef Varadi, Wizz Air’s CEO, remarked, “The last 12 months have been an exciting period for Wizz Air. Having successfully listed on the London Stock Exchange, we have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base. We are pleased to announce a record set of results for the full year with a strong performance against all key operating and financial performance measures.
“Last year alone we carried 2.6 million more passengers than in the previous year and we look forward to driving traffic growth further in the year ahead,” Varadi added. “We will continue to expand our route network, drive efficiency in our operating model, and enhance our compelling customer proposition to sustain growth and drive returns for shareholders.”
As well as an 18% increase in passengers carried – from 13.9m in FY14 to 16.5m in FY15 – Wizz Air noted an increase in total revenues of 21% to €1,227 million, with ticket revenues rising by 20% to €794 million and ancillary revenues growing by 23% to €434 million. The reported net profit was €183 million, an increase of 109%.
These results were cemented by a strong fourth quarter, which registered an underlying net loss of €11 million, halving the underlying net loss of €22 million in the same quarter of FY14.
In terms of aircraft, the carrier added nine additional Airbus A320s across the year. All aircraft deliveries between November 2015 and December 2017 have now been converted to the larger Airbus A321 to serve the higher density routes.
Wizz Air hopes to grow capacity by around 17% in FY16. Management continues to believe that there will be no earnings benefit from the decline in fuel prices as lower fuel prices feed through to lower air fares.